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To amend sections 5311.08, 5311.081, 5311.09, | 1 |
5311.091, and 5311.22 and to enact sections | 2 |
5311.082, 5311.083, 5311.15, and 5311.28 to | 3 |
5311.33 of the Revised Code to require certain | 4 |
condominium association managers to hold a real | 5 |
estate broker's license, to make changes to the | 6 |
board meetings, record retention, and budget | 7 |
procedure requirements of the Condominium Law, and | 8 |
to establish the creation of a registry of | 9 |
condominium developments and the Ohio Condominium | 10 |
Dispute Resolution Board. | 11 |
Section 1. That sections 5311.08, 5311.081, 5311.09, | 12 |
5311.091, and 5311.22 be amended and sections 5311.082, 5311.083, | 13 |
5311.15, 5311.28, 5311.29, 5311.30, 5311.31, 5311.32, and 5311.33 | 14 |
of the Revised Code be enacted to read as follows: | 15 |
Sec. 5311.08. (A)(1) Every condominium property shall be | 16 |
administered by a unit owners association. All power and authority | 17 |
of the unit owners association shall be exercised by a board of | 18 |
directors, which the unit owners shall elect from among the unit | 19 |
owners or the spouses of unit owners. If a unit owner is not an | 20 |
individual, that unit owner may nominate for the board of | 21 |
directors any principal, member of a limited liability company, | 22 |
partner, director, officer, or employee of that unit owner. | 23 |
(2) The board of directors shall elect a president, | 24 |
secretary, treasurer, and other officers that the board may | 25 |
desire. | 26 |
(3) Unless otherwise provided in the declaration or the | 27 |
bylaws, all meetings of the unit owners association are open to | 28 |
the unit owners, and those present in person or by proxy when | 29 |
action is taken during a meeting of the unit owners association | 30 |
constitute a sufficient quorum. | 31 |
(4)(a) All meetings of the board of directors shall be open | 32 |
to all unit owners. A portion of each board meeting shall be | 33 |
allocated for comments by unit owners. A unit owner may send an | 34 |
agent or a representative to attend a board meeting in the unit | 35 |
owner's place. | 36 |
(b) At least five days prior to a meeting of the board of | 37 |
directors, the board shall send notice and an agenda to all unit | 38 |
owners in the condominium property. The board shall make all | 39 |
materials provided to board members for the meeting available to | 40 |
unit owners. | 41 |
(c) A meeting of the board of directors may be held by any | 42 |
method of communication, including electronic or telephonic | 43 |
communication provided that each member of the board, and each | 44 |
unit owner that participates, can hear, participate, and respond | 45 |
to every other member of the board or unit owner. | 46 |
| 47 |
directors
| 48 |
49 | |
50 | |
record. | 51 |
(B) The unit owners association shall be governed by bylaws. | 52 |
No modification of or amendment to the bylaws is valid unless it | 53 |
is set forth in an amendment to the declaration, and the amendment | 54 |
to the declaration is filed for record. Unless otherwise provided | 55 |
by the declaration, the bylaws shall provide for the following: | 56 |
(1)(a) The election of the board of directors of the unit | 57 |
owners association; | 58 |
(b) The number of persons constituting the board; | 59 |
(c) The terms of the directors, with not less than one-fifth | 60 |
to expire annually; | 61 |
(d) The powers and duties of the board; | 62 |
(e) The compensation of the directors; | 63 |
(f) The method of removal of directors from office; | 64 |
(g) The election of officers of the board; | 65 |
(h) Whether or not the services of a manager or managing | 66 |
agent may be engaged. | 67 |
(2) The time and place for holding meetings; the manner of | 68 |
and authority for calling, giving notice of, and conducting | 69 |
meetings; and the requirement, in terms of undivided interests in | 70 |
the common elements, of a quorum for meetings of the unit owners | 71 |
association; | 72 |
(3) By whom and the procedure by which maintenance, repair, | 73 |
and replacement of the common elements may be authorized; | 74 |
(4) The common expenses for which assessments may be made and | 75 |
the manner of collecting from the unit owners their respective | 76 |
shares of the common expenses; | 77 |
(5) The method of distributing the common profits; | 78 |
(6) By whom and the procedure by which administrative rules | 79 |
governing the operation and use of the condominium property or any | 80 |
portion of the property may be adopted and amended. These rules | 81 |
may govern any aspect of the condominium property that is not | 82 |
required to be governed by bylaws and may include standards | 83 |
governing the type and nature of information and documents that | 84 |
are subject to examination and copying by unit owners pursuant to | 85 |
section 5311.091 of the Revised Code, including the times and | 86 |
location at which items may be examined or copied and any required | 87 |
fee for copying the information or documents. | 88 |
(C)(1) The unit owners association shall be established not | 89 |
later than the date that the deed or other evidence of ownership | 90 |
is filed for record following the first sale of a condominium | 91 |
ownership interest in a condominium development. Membership in the | 92 |
unit owners association shall be limited to unit owners, and all | 93 |
unit owners shall be members. Until the unit owners association is | 94 |
established, the developer shall act in all instances in which | 95 |
action of the unit owners association or its officers is | 96 |
authorized or required by law or the declaration. | 97 |
(2)(a) Not later than sixty days after the developer has sold | 98 |
and conveyed condominium ownership interests appertaining to | 99 |
twenty-five per cent of the undivided interests in the common | 100 |
elements in a condominium development, the unit owners association | 101 |
shall meet, and the unit owners other than the developer shall | 102 |
elect not less than one-third of the members of the board of | 103 |
directors. | 104 |
(b) When computing undivided interests in expandable | 105 |
condominium properties for purposes of divisions (C) and (D) of | 106 |
this section, the undivided interests in common elements shall be | 107 |
computed by comparing the number of units sold and conveyed to the | 108 |
maximum number of units that may be created, as stated in the | 109 |
declaration pursuant to division (C)(8) of section 5311.05 of the | 110 |
Revised Code. | 111 |
(D)(1) Except as provided in division (C) of this section, | 112 |
the declaration or bylaws of a condominium development may | 113 |
authorize the developer or persons the developer designates to | 114 |
appoint and remove members of the board of directors of the unit | 115 |
owners association and to exercise the powers and responsibilities | 116 |
otherwise assigned by law, the declaration, or the bylaws to the | 117 |
unit owners association or to the board of directors. The | 118 |
authorization for developer control may extend from the date the | 119 |
unit owners association is established until sixty days after the | 120 |
sale and conveyance to purchasers in good faith for value of | 121 |
condominium ownership interests to which seventy-five per cent of | 122 |
the undivided interests in the common elements appertain, except | 123 |
that in no case may the authorization extend for more than five | 124 |
years after the unit owners association is established if the | 125 |
declaration includes expandable condominium property or more than | 126 |
three years after the unit owners association is established if | 127 |
the declaration does not include expandable condominium property. | 128 |
(2) If there is a unit owner other than the developer, the | 129 |
declaration of a condominium development shall not be amended to | 130 |
increase the scope or the period of the developer's control. | 131 |
(3) Within sixty days after the expiration of the period | 132 |
during which the developer has control pursuant to division (D)(1) | 133 |
of this section, the unit owners association shall meet and elect | 134 |
all members of the board of directors of the association. The | 135 |
persons elected shall take office at the end of the meeting during | 136 |
which they are elected and shall, as soon as reasonably possible, | 137 |
appoint officers. | 138 |
(E) The board of directors, or the developer while in control | 139 |
of the association, may take any measures necessary to incorporate | 140 |
the unit owners association as a not-for-profit corporation. | 141 |
(F) If the services of a manager or managing agent are | 142 |
engaged, the manager or managing agent shall comply with section | 143 |
5311.15 of the Revised Code. | 144 |
Sec. 5311.081. (A) Unless otherwise provided in the | 145 |
declaration or bylaws, the unit owners association, through the | 146 |
board of directors, shall do both of the following: | 147 |
(1) | 148 |
amend budgets for revenues, expenditures, and reserves in an | 149 |
amount adequate to repair and replace major capital items in the | 150 |
normal course of operations without the necessity of special | 151 |
assessments, provided that the amount set aside annually for | 152 |
reserves shall not be less than ten per cent of the budget for | 153 |
that year unless the reserve requirement is waived annually by the | 154 |
unit owners exercising not less than a majority of the voting | 155 |
power of the unit owners association; | 156 |
(2) Collect assessments for common expenses from unit owners. | 157 |
(B) Unless otherwise provided in the declaration, the unit | 158 |
owners association, through the board of directors, may exercise | 159 |
all powers of the association, including the power to do the | 160 |
following: | 161 |
(1) | 162 |
and fire managing agents, attorneys, accountants, and other | 163 |
independent contractors and employees that the board determines | 164 |
are necessary or desirable in the management of the condominium | 165 |
property and the association; | 166 |
(2) Commence, defend, intervene in, settle, or compromise any | 167 |
civil, criminal, or administrative action or proceeding that is in | 168 |
the name of, or threatened against, the unit owners association, | 169 |
the board of directors, or the condominium property, or that | 170 |
involves two or more unit owners and relates to matters affecting | 171 |
the condominium property; | 172 |
(3) Enter into contracts and incur liabilities relating to | 173 |
the operation of the condominium property; | 174 |
(4) Regulate the use, maintenance, repair, replacement, | 175 |
modification, and appearance of the condominium property; | 176 |
(5) Adopt rules that regulate the use or occupancy of units, | 177 |
the maintenance, repair, replacement, modification, and appearance | 178 |
of units, common elements, and limited common elements when the | 179 |
actions regulated by those rules affect common elements or other | 180 |
units; | 181 |
(6) Cause additional improvements to be made as part of the | 182 |
common elements; | 183 |
(7) Purchase, encumber, and convey units, and, subject to any | 184 |
restrictions in the declaration or bylaws and with the approvals | 185 |
required by division (H)(2) or (3) of section 5311.04 of the | 186 |
Revised Code, acquire an interest in other real property and | 187 |
encumber or convey that interest. All expenses incurred in | 188 |
connection with the acquisition, encumbrance, use, and operation | 189 |
of that interest are common expenses. | 190 |
(8) Acquire, encumber, and convey or otherwise transfer | 191 |
personal property; | 192 |
(9) Hold in the name of the unit owners association the real | 193 |
property and personal property acquired pursuant to divisions | 194 |
(B)(7) and (8) of this section; | 195 |
(10) Grant easements, leases, licenses, and concessions | 196 |
through or over the common elements; | 197 |
(11) Impose and collect fees or other charges for the use, | 198 |
rental, or operation of the common elements or for services | 199 |
provided to unit owners; | 200 |
(12) Impose interest and late charges for the late payment of | 201 |
assessments; impose returned check charges; and, pursuant to | 202 |
division (C) of this section, impose reasonable enforcement | 203 |
assessments for violations of the declaration, the bylaws, and the | 204 |
rules of the unit owners association, and reasonable charges for | 205 |
damage to the common elements or other property; | 206 |
(13) Adopt and amend rules that regulate the collection of | 207 |
delinquent assessments and the application of payments of | 208 |
delinquent assessments; | 209 |
(14) Subject to applicable laws, adopt and amend rules that | 210 |
regulate the termination of utility or other service to a | 211 |
commercial unit if the unit owner is delinquent in the payment of | 212 |
an assessment that pays, in whole or in part, the cost of that | 213 |
service; | 214 |
(15) Impose reasonable charges for preparing, recording, or | 215 |
copying amendments to the declaration, resale certificates, or | 216 |
statements of unpaid assessments; | 217 |
(16) Enter a unit for bona fide purposes when conditions | 218 |
exist that involve an imminent risk of damage or harm to common | 219 |
elements, another unit, or to the health or safety of the | 220 |
occupants of that unit or another unit; | 221 |
(17) To the extent provided in the declaration or bylaws, | 222 |
assign the unit owners association's rights to common assessments, | 223 |
or other future income, to a lender as security for a loan to the | 224 |
unit owners association; | 225 |
(18) Suspend the voting privileges and use of recreational | 226 |
facilities of a unit owner who is delinquent in the payment of | 227 |
assessments for more than thirty days; | 228 |
(19) Purchase insurance and fidelity bonds the directors | 229 |
consider appropriate or necessary; | 230 |
(20) Invest excess funds in investments that meet standards | 231 |
for fiduciary investments under Ohio law; | 232 |
(21) Exercise powers that are: | 233 |
(a) Conferred by the declaration or the bylaws of the unit | 234 |
owners association or the board of directors; | 235 |
(b) Necessary to incorporate the unit owners association as a | 236 |
not-for-profit corporation; | 237 |
(c) Permitted to be exercised in this state by a | 238 |
not-for-profit corporation; | 239 |
(d) Necessary and proper for the government and operation of | 240 |
the unit owners association. | 241 |
(C)(1) Prior to imposing a charge for damages or an | 242 |
enforcement assessment pursuant to division (B)(12) of this | 243 |
section, the board of directors shall give the unit owner a | 244 |
written notice that includes all of the following: | 245 |
(a) A description of the property damage or violation; | 246 |
(b) The amount of the proposed charge or assessment; | 247 |
(c) A statement that the owner has a right to a hearing | 248 |
before the board of directors to contest the proposed charge or | 249 |
assessment; | 250 |
(d) A statement setting forth the procedures to request a | 251 |
hearing pursuant to division (C)(2) of this section; | 252 |
(e) A reasonable date by which the unit owner must cure the | 253 |
violation to avoid the proposed charge or assessment. | 254 |
(2)(a) To request a hearing, the owner shall deliver a | 255 |
written notice to the board of directors not later than the tenth | 256 |
day after receiving the notice required by division (C)(1) of this | 257 |
section. If the owner fails to make a timely request for a | 258 |
hearing, the right to that hearing is waived, and the board may | 259 |
immediately impose a charge for damages or an enforcement | 260 |
assessment pursuant to division (C) of this section. | 261 |
(b) If a unit owner requests a hearing, at least seven days | 262 |
prior to the hearing the board of directors shall provide the unit | 263 |
owner with a written notice that includes the date, time, and | 264 |
location of the hearing. | 265 |
(3) The board of directors shall not levy a charge or | 266 |
assessment before holding any hearing requested pursuant to | 267 |
division (C)(2) of this section. | 268 |
(4) The unit owners, through the board of directors, may | 269 |
allow a reasonable time to cure a violation described in division | 270 |
(B)(12) of this section before imposing a charge or assessment. | 271 |
(5) Within thirty days following a hearing at which the board | 272 |
of directors imposes a charge or assessment, the unit owners | 273 |
association shall deliver a written notice of the charge or | 274 |
assessment to the unit owner. | 275 |
(6) Any written notice that division (C) of this section | 276 |
requires shall be delivered to the unit owner or any occupant of | 277 |
the unit by personal delivery, by certified mail, return receipt | 278 |
requested, or by regular mail. | 279 |
(D) The board of directors shall adopt a proposed budget in | 280 |
accordance with division (A)(1) of this section for consideration | 281 |
by the unit owners. Not later than thirty days after adoption of a | 282 |
proposed budget, the board shall provide to all the unit owners a | 283 |
summary of the proposed budget including an explanation of the | 284 |
amount and method of calculating and funding reserves, if | 285 |
applicable. Starting on the date the board provides the summary of | 286 |
the proposed budget, the board shall set a date of not less than | 287 |
sixty days for a meeting of the unit owners to consider approval | 288 |
of the budget. The board shall give all unit owners seven days | 289 |
notice of the date, time, and location of the scheduled meeting. | 290 |
If, at that meeting, a majority of all unit owners votes to reject | 291 |
the budget, the budget is rejected. Otherwise the budget is | 292 |
approved. The absence of a quorum at such meeting or participating | 293 |
in the vote by ballot shall not affect rejection or approval of | 294 |
the budget. If a proposed budget is rejected, the budget last | 295 |
approved by the unit owner association continues until unit owners | 296 |
approve a subsequent budget. | 297 |
Sec. 5311.082. (A) The division of real estate and | 298 |
professional licensing shall establish and maintain a registry, in | 299 |
the form of a database, of the names of condominium associations | 300 |
in the state. Information in the database shall be available for | 301 |
public viewing. The division shall include access to the | 302 |
information in the database on the division's web site and in | 303 |
other materials, as determined by the superintendent. | 304 |
(B) The division of real estate and professional licensing | 305 |
shall perform all of the following duties: | 306 |
(1) Adopt, amend, and rescind rules in accordance with | 307 |
Chapter 119. of the Revised Code to carry out sections 5311.082 | 308 |
and 5311.083 of the Revised Code governing the registration of | 309 |
condominium associations; | 310 |
(2) Prescribe the form and content of all applications to be | 311 |
used for registration and renewal of registration pursuant to | 312 |
section 5311.083 of the Revised Code; | 313 |
(3) Review applications for registration and issue | 314 |
registration certificates to condominium associations that meet | 315 |
the requirements for registration pursuant to section 5311.083 of | 316 |
the Revised Code; | 317 |
(4) Collect all fees related to the registration and renewal | 318 |
of registration certificates for condominium associations; | 319 |
(5) Maintain a written record of each condominium association | 320 |
registered with the division, which shall include such | 321 |
documentation as required by the division. The record shall be | 322 |
available for inspection by the public through the web site and | 323 |
copies shall be made available pursuant to division (B) of section | 324 |
149.43 of the Revised Code. | 325 |
(6) Hire all division personnel necessary to implement | 326 |
sections 5311.082 and 5311.083 of the Revised Code. | 327 |
Sec. 5311.083. (A)(1) The board of directors of a condominium | 328 |
association shall apply to the division of real estate and | 329 |
professional licensing in the department of commerce to register | 330 |
the association on forms prescribed by the division. With the | 331 |
application, the applicant shall submit any information required | 332 |
by the division and a registration fee of twenty-five dollars. | 333 |
(2) The director of commerce, by rule adopted in accordance | 334 |
with Chapter 119. of the Revised Code, may reduce the amount of | 335 |
the registration fee required by this section in any year if the | 336 |
director determines that the total amount of funds the fee is | 337 |
generating at the amount specified by this section exceeds the | 338 |
amount of funds the division and the Ohio condominium dispute | 339 |
resolution board created by section 5311.28 of the Revised Code | 340 |
need to carry out their powers and duties under this chapter. If | 341 |
the director so reduces the amount of the registration fee, the | 342 |
director shall reduce it for all owners or other persons required | 343 |
to pay the fee under division (A)(1) of this section. If the | 344 |
director has reduced the fee under division (A)(2) of this | 345 |
section, the director may later raise it up to the amounts | 346 |
specified in division (A)(1) of this section if, in any year, the | 347 |
director determines that the total amount of funds the fee is | 348 |
generating at the reduced amount is insufficient for the division | 349 |
and the Ohio condominium dispute resolution board to carry out | 350 |
their powers and duties under this chapter. | 351 |
(B) Upon receipt of the completed application form, | 352 |
documentation, and registration fee, the division shall issue a | 353 |
certificate of registration to the applicant. The applicant shall | 354 |
display the certificate in a conspicuous place on the premises of | 355 |
the condominium property for which the registration was obtained. | 356 |
(C) Except as otherwise provided in this division, each | 357 |
registration issued pursuant to this section shall expire annually | 358 |
on the thirtieth day of June and may be renewed. The renewal fee | 359 |
shall be the same as the initial registration fee prescribed in | 360 |
division (A) of this section. | 361 |
(D) All registration and renewal fees collected pursuant to | 362 |
this section shall be paid into the state treasury to the credit | 363 |
of the division of real estate and professional licensing in the | 364 |
department of commerce to be used by the division to carry out its | 365 |
powers and duties under this chapter and by the Ohio condominium | 366 |
dispute resolution board created by section 5311.28 of the Revised | 367 |
Code. | 368 |
Sec. 5311.09. (A)(1) The unit owners association shall keep | 369 |
all of the following: | 370 |
(a) Correct and complete books and records of account that | 371 |
specify the receipts and expenditures relating to the common | 372 |
elements and other common receipts and expenses; | 373 |
(b) Records showing the allocation, distribution, and | 374 |
collection of the common profits, losses, and expenses among and | 375 |
from the unit owners; | 376 |
(c) Minutes of the meetings of the association and the board | 377 |
of directors; | 378 |
(d) Records of the names, in alphabetical order, and | 379 |
addresses of the unit owners and their respective undivided | 380 |
interests in the common elements; | 381 |
(e) Records showing the names and addresses of the members of | 382 |
the board of directors and association officers; | 383 |
(f) Records of all actions taken without a meeting of the | 384 |
board of directors; | 385 |
(g) The original or restated documents described in division | 386 |
(B)(1)(b) of this section; | 387 |
(h) All financial statements and tax returns, which shall be | 388 |
kept for a minimum of three years; | 389 |
(i) All current contracts into which the condominium | 390 |
development has entered; | 391 |
(j) Records of approvals or denials for requests for design | 392 |
or architectural approval from the board of directors or the unit | 393 |
owners association; | 394 |
(k) Ballots, proxies, and other voting records of the board | 395 |
of directors and the unit owners association, which shall be kept | 396 |
for a minimum of one year. | 397 |
(2) Within thirty days after a unit owner obtains a | 398 |
condominium ownership interest, the unit owner shall provide the | 399 |
following information in writing to the unit owners association | 400 |
through the board of directors: | 401 |
(a) The home address, home and business mailing addresses, | 402 |
and the home and business telephone numbers of the unit owner and | 403 |
all occupants of the unit; | 404 |
(b) The name, business address, and business telephone number | 405 |
of any person who manages the owner's unit as an agent of that | 406 |
owner. | 407 |
(3) Within thirty days after a change in any information that | 408 |
division (A)(2) of this section requires, a unit owner shall | 409 |
notify the association, through the board of directors, in writing | 410 |
of the change. When the board of directors requests, a unit owner | 411 |
shall verify or update the information. | 412 |
(B)(1) When elected members of a board of directors of a unit | 413 |
owners association take control of the association, the declarant | 414 |
or developer shall deliver to the board correct and complete | 415 |
copies of all of the following: | 416 |
(a) The books, records, and minutes referred to in division | 417 |
(A) of this section; | 418 |
(b) The declaration, the bylaws, the drawings prepared | 419 |
pursuant to section 5311.07 of the Revised Code, as recorded, and | 420 |
any articles of incorporation of the unit owners association, as | 421 |
recorded; | 422 |
(c) Except in the case of a conversion condominium, | 423 |
documents, information, and sources of information concerning the | 424 |
location of underground utility lines, and plans and | 425 |
specifications that are not proprietary or copyrighted, of the | 426 |
buildings, other improvements, and structures of the condominium | 427 |
property that are reasonably available to the developer, but only | 428 |
in connection with condominium developments declared on or after | 429 |
430 | |
condominium developments that are declared prior to that date but | 431 |
originally built or constructed on or after that date. | 432 |
(2) The board of directors may commence a civil action on | 433 |
behalf of the unit owners association in the court of common pleas | 434 |
of the county in which the condominium property is located to | 435 |
obtain injunctive relief or recover damages for harm resulting | 436 |
from the declarant's or developer's failure to comply with | 437 |
division (B)(1) of this section. | 438 |
Sec. 5311.091. (A)(1) Except as otherwise prohibited by this | 439 |
section, any member of a unit owners association or any manager or | 440 |
managing agent of the condominium property may examine and copy | 441 |
the | 442 |
(A) of section 5311.09 of the Revised Code pursuant to reasonable | 443 |
standards set forth in the declaration, bylaws, or rules the board | 444 |
promulgates, which may include | 445 |
446 | |
447 | |
be examined or copied | 448 |
for copying the documents or the supervision of examination. A | 449 |
member of the unit owners association, manager, or managing agent | 450 |
desiring to examine or copy the information shall submit a notice | 451 |
five days in advance of the date of examination. | 452 |
(2) Unless otherwise provided in the declaration or bylaws | 453 |
pursuant to division (B)(6) of section 5311.08 of the Revised | 454 |
Code, the board of directors may establish a policy requiring a | 455 |
unit owner, manager, or managing agent that requests records in | 456 |
accordance with division (A)(1) of this section to pay a | 457 |
reasonable charge for copies of the records or supervision for | 458 |
examination of the records. | 459 |
(B) The unit owners association is not required to permit the | 460 |
examination and copying of any of the following from books, | 461 |
records, and minutes: | 462 |
(1) Information that pertains to condominium property-related | 463 |
personnel matters; | 464 |
(2) Communications with legal counsel or attorney work | 465 |
product pertaining to pending litigation or other condominium | 466 |
property-related matters; | 467 |
(3) Information that pertains to contracts or transactions | 468 |
currently under negotiation, or information that is contained in a | 469 |
contract or other agreement containing confidentiality | 470 |
requirements and that is subject to those requirements; | 471 |
(4) Information that relates to the enforcement of the | 472 |
declaration, bylaws, or rules of the unit owners association | 473 |
against unit owners; | 474 |
(5) Information the disclosure of which is prohibited by | 475 |
state or federal law. | 476 |
Sec. 5311.15. No manager or managing agent of a condominium | 477 |
development containing more than ten units shall manage or be | 478 |
hired by a unit owners association pursuant to sections 5311.08 | 479 |
and 5311.081 of the Revised Code unless the manager or managing | 480 |
agent holds a current and active real estate broker's license | 481 |
issued under Chapter 4735. of the Revised Code. | 482 |
Sec. 5311.22. (A) Unless otherwise provided in the | 483 |
declaration or bylaws, each unit owner may exercise that | 484 |
percentage of the total voting power of all unit owners on any | 485 |
question for which the vote of unit owners is permitted or | 486 |
required that is equivalent to the undivided interest in the | 487 |
common elements appurtenant to the owner's unit. | 488 |
(B) Fiduciaries who are owners of record of a unit or units | 489 |
may vote their respective interests as unit owners. Unless | 490 |
otherwise provided in the declaration or bylaws, if two or more | 491 |
persons, whether fiduciaries, tenants in common, or otherwise, own | 492 |
undivided interests in a unit, each person may exercise the | 493 |
proportion of the voting power of all of the owners of the unit | 494 |
that is equivalent to the person's proportionate undivided | 495 |
interest in the unit. | 496 |
(C) A fiduciary for a unit owner or of the estate of a unit | 497 |
owner may vote as though the fiduciary were the unit owner when | 498 |
the fiduciary has furnished to the unit owners association proof, | 499 |
satisfactory to it, of the fiduciary's appointment and | 500 |
qualification as an executor under the last will of a deceased | 501 |
unit owner, an administrator of the estate of a deceased unit | 502 |
owner, a guardian, committee, or conservator of the estate of a | 503 |
minor or incompetent who is a unit owner, a trustee in bankruptcy | 504 |
of a unit owner, a statutory or judicial receiver or liquidator of | 505 |
the estate or affairs of a unit owner, or an assignee for the | 506 |
benefit of creditors of a unit owner. | 507 |
(D) When any fiduciary or representative of a unit owner who | 508 |
is not described in division (C) of this section has furnished the | 509 |
unit owners association with satisfactory proof of authority, that | 510 |
person may vote as though a unit owner. | 511 |
(E) Unless otherwise provided in the declaration or bylaws, | 512 |
votes allocated to a unit may be cast by a directed or undirected | 513 |
proxy executed by a unit owner, provided that a person shall not | 514 |
cast votes representing more than fifteen per cent of the votes in | 515 |
the unit owners association pursuant to undirected proxies. | 516 |
Sec. 5311.28. (A) There is hereby created the Ohio | 517 |
condominium dispute resolution board, consisting of seven members | 518 |
who shall be appointed by the governor, with the advice and | 519 |
consent of the senate. The board shall be comprised of the | 520 |
following members: | 521 |
(1) Two members shall be condominium unit owners and members | 522 |
of a condominium unit owners association, but not members of a | 523 |
condominium unit owners association board of directors. One of | 524 |
these members shall be from a small association and one shall be | 525 |
from a large association. | 526 |
(2) Two members shall be members of a condominium unit | 527 |
association board of directors. One of these members shall be from | 528 |
a small association and one shall be from a large association. | 529 |
(3) One member shall be a certified public accountant. | 530 |
(4) One member shall be a real estate attorney. | 531 |
(5) One member shall represent the public and be a | 532 |
non-condominium property homeowner. | 533 |
(B)(1) Within a reasonable time, the governor shall make | 534 |
initial appointments to the board. The initial members of the | 535 |
board shall serve staggered terms ending on the thirtieth day of | 536 |
June one, two, three, four, or five years after appointment, as | 537 |
determined by the governor. Thereafter, terms of office shall be | 538 |
for five years, commencing on the first day of July and ending on | 539 |
the thirtieth day of June. Each member shall hold office from the | 540 |
date of appointment until the end of the term for which appointed. | 541 |
No more than four members shall be members of any one political | 542 |
party. Each member, before entering upon the duties of office, | 543 |
shall subscribe to and file with the secretary of state the | 544 |
constitutional oath of office. The governor may remove any member | 545 |
for misconduct, neglect of duty, incapacity, or malfeasance in | 546 |
accordance with section 3.04 of the Revised Code. All vacancies | 547 |
that occur shall be filled in the manner prescribed for the | 548 |
regular appointments to the board. Any member appointed to fill a | 549 |
vacancy occurring prior to the expiration of the term for which | 550 |
the member's predecessor was appointed shall hold office for the | 551 |
remainder of such term. Any member shall continue in office | 552 |
subsequent to the expiration date of the member's term until the | 553 |
member's successor takes office, or until a period of sixty days | 554 |
has elapsed, whichever occurs first. No member shall hold office | 555 |
for more than two consecutive full terms. | 556 |
(2) Annually, upon the qualification of the member appointed | 557 |
in such year, the board shall organize by selecting from its | 558 |
members a chairperson, vice-chairperson, and secretary, and shall | 559 |
do all things necessary and proper to carry out and enforce this | 560 |
chapter. | 561 |
The chairperson or vice-chairperson may do all of the | 562 |
following: | 563 |
(a) Administer oaths; | 564 |
(b) Issue subpoenas; | 565 |
(c) Summon witnesses; | 566 |
(d) Compel the production of books, papers, records, and | 567 |
other forms of evidence; | 568 |
(e) Fix the time and place for hearing any matter related to | 569 |
compliance with sections 5311.08, 5311.081, 5311.083, 5311.09, and | 570 |
5311.091 of the Revised Code. | 571 |
(3) A majority of the members of the board shall constitute a | 572 |
quorum, but a lesser number may adjourn from time to time. | 573 |
(4) Members of the board shall receive no compensation but | 574 |
shall be reimbursed for their actual and necessary expenses | 575 |
incurred in the discharge of their duties. | 576 |
(C) The division of real estate and professional licensing in | 577 |
the department of commerce shall provide the board with meeting | 578 |
space, staff services, and other technical assistance required by | 579 |
the board in carrying out its duties pursuant to sections 5311.29 | 580 |
to 5311.33 of the Revised Code. | 581 |
(D) As used in this section: | 582 |
(1) "Small association" means a condominium development with | 583 |
fifty units or less; | 584 |
(2) "Large association" means a condominium development with | 585 |
more than fifty units. | 586 |
Sec. 5311.29. The Ohio condominium dispute resolution board, | 587 |
the director of commerce, or the superintendent of real estate and | 588 |
professional licensing may compel, by order or subpoena, the | 589 |
attendance of witnesses to testify in relation to any matter over | 590 |
which the board, director, or superintendent has jurisdiction and | 591 |
which is the subject of inquiry and investigation by the board, | 592 |
director, or superintendent, and require the production of any | 593 |
book, paper, or document pertaining to such matter. For such | 594 |
purpose, the board, director, or superintendent shall have the | 595 |
same power as judges of county courts to administer oaths, compel | 596 |
the attendance of witnesses, and punish them for refusal to | 597 |
testify. Service of the subpoena may be made by sheriffs or | 598 |
constables, or by certified mail, return receipt requested, and | 599 |
the subpoena shall be deemed served on the date delivery is made | 600 |
or the date the person refused to accept delivery. Witnesses shall | 601 |
receive, after their appearance before the board or | 602 |
superintendent, the fees and mileage provided for under section | 603 |
119.094 of the Revised Code. If two or more witnesses travel | 604 |
together in the same vehicle, the mileage fee shall be paid to | 605 |
only one of those witnesses, but the witnesses may agree to divide | 606 |
the fee among themselves in any manner. | 607 |
In addition to the powers granted to the board, director, and | 608 |
superintendent under this section, in case any person fails to | 609 |
file any statement or report, obey any subpoena, give testimony, | 610 |
answer questions, or produce any books, records, or papers as | 611 |
required by the board, director, or superintendent under this | 612 |
chapter, the court of common pleas of any county in the state, | 613 |
upon application made to it by the board, director, or | 614 |
superintendent setting forth such failure, may make an order | 615 |
awarding process of subpoena or subpoena duces tecum for the | 616 |
person to appear and testify before the board, director, or | 617 |
superintendent, and may order any person to give testimony and | 618 |
answer questions, and to produce books, records, or papers, as | 619 |
required by the board or superintendent. Upon the filing of such | 620 |
order in the office of the clerk of the court of common pleas, the | 621 |
clerk, under the seal of the court, shall issue process of | 622 |
subpoena for the person to appear before the board or | 623 |
superintendent at a time and place named in the subpoena, and each | 624 |
day thereafter until the examination of such person is completed. | 625 |
The subpoena may contain a direction that the witness bring with | 626 |
the witness to the examination any books, records, or papers | 627 |
mentioned in the subpoena. The clerk shall also issue, under the | 628 |
seal of the court, such other orders, in reference to the | 629 |
examination, appearance, and production of books, records, or | 630 |
papers, as the court directs. If any person so summoned by | 631 |
subpoena fails to obey the subpoena, to give testimony, to answer | 632 |
questions as required, or to obey an order of the court, the | 633 |
court, on motion supported by proof, may order an attachment for | 634 |
contempt to be issued against the person charged with disobedience | 635 |
of any order or injunction issued by the court under this chapter. | 636 |
If the person is brought before the court by virtue of the | 637 |
attachment, and if upon a hearing the disobedience appears, the | 638 |
court may order the offender to be committed and kept in close | 639 |
custody. | 640 |
Sec. 5311.30. (A) The Ohio condominium dispute resolution | 641 |
board is a part of the department of commerce for administrative | 642 |
purposes. The director of commerce is ex officio the executive | 643 |
officer of the board, or the director may appoint the | 644 |
superintendent of real estate and professional licensing, if a | 645 |
superintendent is designated pursuant to section 4735.05 of the | 646 |
Revised Code, to act as executive officer of the board. | 647 |
(B) The director, the superintendent, or the board, except as | 648 |
otherwise provided, shall do all of the following: | 649 |
(1) Hear and investigate all of the following: | 650 |
(a) General complaints and disputes between a unit owner, a | 651 |
unit owners association, or a board of directors; | 652 |
(b) Requests for elections monitoring and oversight of unit | 653 |
owners associations and boards of directors; | 654 |
(c) Disputes over access to records of a unit owners | 655 |
association or board of directors. | 656 |
(2) Establish and maintain an investigation and audit section | 657 |
to investigate complaints and conduct inspections, audits, and | 658 |
other inquiries as in the judgment of the director, | 659 |
superintendent, or board are appropriate. The investigators or | 660 |
auditors have the right to review and audit the records described | 661 |
in division (A)(1) of section 5311.09 of the Revised Code during | 662 |
normal business hours. | 663 |
(C) The director, superintendent, or board may, in connection | 664 |
with investigations and audits under division (B) of this section, | 665 |
subpoena witnesses as provided in section 5311.29 of the Revised | 666 |
Code. | 667 |
(D) All information that is obtained by the board, | 668 |
investigators, and auditors performing investigations or | 669 |
conducting inspections, audits, and other inquiries pursuant to | 670 |
division (B) of this section and all reports, documents, and other | 671 |
work products that arise from that information and that are | 672 |
prepared by the board, investigators, auditors, or other personnel | 673 |
of the department, shall be held in confidence by the director, | 674 |
superintendent, or board, the investigators and auditors, and | 675 |
other personnel of the department. All information obtained by the | 676 |
board, investigators, or auditors from an informal mediation | 677 |
meeting held pursuant to section 5311.31 of the Revised Code, | 678 |
including the agreement to mediate and the accommodation | 679 |
agreement, shall be held in confidence by the director, | 680 |
superintendent, or board, investigators, auditors, and other | 681 |
personnel of the department. | 682 |
Sec. 5311.31. The Ohio condominium dispute resolution board | 683 |
shall perform all of the following duties: | 684 |
(A) Adopt, amend, and rescind such rules in accordance with | 685 |
Chapter 119. of the Revised Code as are necessary in carrying out | 686 |
sections 5311.29 to 5311.33 of the Revised Code, including rules | 687 |
relative to the following: | 688 |
(1) Transacting the board's business and managing its | 689 |
affairs; | 690 |
(2) Establishing procedures for receiving, reviewing, and | 691 |
responding to complaints filed pursuant to section 5311.32 of the | 692 |
Revised Code; | 693 |
(3) Conducting investigations in response to complaints filed | 694 |
pursuant to division (A) of section 5311.32 of the Revised Code; | 695 |
(4) Resolving complaints by using informal techniques of | 696 |
mediation, conciliation, and persuasion, including requiring the | 697 |
parties involved in a complaint to be given prompt notice of any | 698 |
offers to resolve disputes and responses thereto; | 699 |
(5) Advising all parties making a complaint, or who are the | 700 |
subject of a complaint, of any recommendations or findings of fact | 701 |
made by the board with respect to the complaint; | 702 |
(6) Requesting the party who has filed a complaint or is the | 703 |
subject of a complaint, and is affected by recommendations of the | 704 |
board made with respect to the complaint, to notify the board | 705 |
within a time specified by the board of any action the party has | 706 |
taken in response to the board's recommendations; | 707 |
(7) Conducting nonpublic hearings and maintaining board | 708 |
proceedings and records as confidential, notwithstanding sections | 709 |
121.22 and 149.43 of the Revised Code when the board determines | 710 |
that the nature of the complaints merits that action; | 711 |
(8) Determining the method to be used in serving notices as | 712 |
required by section 5311.32 of the Revised Code. | 713 |
(B) Publicize information concerning the existence and duties | 714 |
of the board and the procedure for filing complaints pursuant to | 715 |
section 5311.32 of the Revised Code; | 716 |
(C) Conduct hearings on complaints pursuant to section | 717 |
5311.32 of the Revised Code; | 718 |
(D) Submit at least annually by the thirty-first day of March | 719 |
a report on the board's activities of the immediately preceding | 720 |
calendar year to the governor and the majority and minority | 721 |
leaders of the senate and house of representatives. The report | 722 |
shall indicate the total number of complaints received, initiated, | 723 |
and investigated under sections 5311.32 and 5311.33 of the Revised | 724 |
Code; the total number of complaints for which hearings were held; | 725 |
and the total number of referrals made to prosecuting attorneys | 726 |
pursuant to section 5311.33 of the Revised Code. | 727 |
(E) Review, at least once each year, all actions taken by the | 728 |
prosecuting attorneys in response to referrals made to them by the | 729 |
board, director of commerce, or the superintendent of the division | 730 |
of real estate and professional licensing in the department of | 731 |
commerce. The board shall include in the report required in | 732 |
division (D) of this section information regarding the nature of | 733 |
the inappropriate conduct alleged in each referral and the status | 734 |
or disposition made of each referral occurring during the | 735 |
preceding two years. | 736 |
(F) Perform all functions as are necessary in administering | 737 |
and enforcing sections 5311.29 to 5311.33 of the Revised Code. | 738 |
Sec. 5311.32. (A) Any person may file a complaint regarding | 739 |
the activity, practice, policy, or procedure of, or regarding an | 740 |
alleged violation of section 5311.08, 5311.081, 5311.09, or | 741 |
5311.091 of the Revised Code by, any board of directors of a | 742 |
condominium association registered pursuant to section 5311.083 of | 743 |
the Revised Code that adversely affects or may adversely affect | 744 |
the interest of a unit owner. All complaints shall be in writing | 745 |
and submitted to the division of real estate in the department of | 746 |
commerce on forms provided by the division. | 747 |
(B) With respect to complaints filed pursuant to division (A) | 748 |
of this section, the division of real estate and professional | 749 |
licensing shall do all of the following: | 750 |
(1) Acknowledge receipt of the complaint by sending written | 751 |
notice to the person who filed the complaint not more than twenty | 752 |
days after receipt of the complaint; | 753 |
(2) Send written notice of the complaint within seven days | 754 |
after receipt of the complaint to the entity that is the subject | 755 |
of the complaint; | 756 |
(3) Before taking further action, allow the entity that is | 757 |
the subject of a complaint thirty days after the date the division | 758 |
sends notice of the complaint to respond to the division with | 759 |
respect to the complaint. | 760 |
(C) The condominium dispute resolution board shall hear each | 761 |
complaint filed pursuant to division (A) of this section within | 762 |
one hundred eighty days after its filing, unless it has been | 763 |
resolved by the parties to the complaint. | 764 |
Sec. 5311.33. (A) The Ohio condominium dispute resolution | 765 |
board, on its own motion or as a result of a complaint received | 766 |
pursuant to section 5311.32 of the Revised Code and with good | 767 |
cause shown, shall investigate or cause to be investigated alleged | 768 |
violations of sections 5311.08, 5311.081, 5311.09, and 5311.091 of | 769 |
the Revised Code. If the board, the director of commerce, or the | 770 |
superintendent of the division of real estate and professional | 771 |
licensing in the department of commerce believes that a violation | 772 |
has occurred, the board, director, or superintendent shall request | 773 |
the prosecuting attorney of the county in which the alleged | 774 |
violation occurred to initiate such proceedings as are | 775 |
appropriate. | 776 |
(B) The board, at any time, may dismiss a complaint if it | 777 |
determines there is not good cause shown for the complaint. If the | 778 |
board dismisses a complaint, it shall notify the person who filed | 779 |
the complaint within twenty days of reaching its decision and | 780 |
identify the reason why the complaint was dismissed. | 781 |
(D) When necessary for the division of real estate and | 782 |
professional licensing to perform the duties required by sections | 783 |
5311.32 and 5311.33 of the Revised Code, the superintendent of the | 784 |
division may issue subpoenas and compel the production of books, | 785 |
papers, records, and other forms of evidence. | 786 |
Section 2. That existing sections 5311.08, 5311.081, | 787 |
5211.09, 5311.091, and 5311.22 of the Revised Code are hereby | 788 |
repealed. | 789 |
Section 3. Sections 5311.082, 5311.083, and 5311.15 of the | 790 |
Revised Code, as enacted by this act, shall take effect one | 791 |
hundred twenty days after the effective date of this act. During | 792 |
that period, the Superintendent of Real Estate and Professional | 793 |
Licensing shall collect and process applications for condominium | 794 |
association registration and shall issue certificates of | 795 |
registration. During that time, no association is required to have | 796 |
a certificate of registration. | 797 |